Gross NPAs drop from 9.11% to 2.58% between March 2021–2025: Govt

Grossnon-performing assets (NPAs) of public sector banks have been declining during the last five financial years, the Centre told the Parliament on Tuesday.

The NPAs have reduced from 9.11 per cent to 2.58% from March 2021 to March 2025, said Minister of State for Finance Pankaj Chaudhary in a written reply in Rajya Sabha. Public sector banks saw a sharp decline in their gross NPAs from ₹6.17 lakh crore in March 2021 to ₹2.84 lakh crore in March 2025, he added.

Non-Performing Assets (NPA) are loans or advances for which the borrower has not made principal or interest payments for a predetermined amount of time, usually ninety days. While, Gross NPA refers to the total value of loans and advances in a bank's portfolio.

According to the MoS Finance, as of March 31, 2021, the gross NPA was Rs 6,16,616 crore, about 9.11 per cent, which witnessed a downturn at Rs 5,40,958 crore or 7.28 per cent in the same period 2022.

In 2023, the gross NPA stood at Rs 4,28,197 crore, reaching at 4.97 per cent.Gross NPAs

The gross NPA figures for the year 2024 further decelerated at Rs 3,39,541 crore, reaching at 3.47 per cent.

MoS Chaudhary apprised the House that the government and RBI have taken comprehensive measures to recover and reduce NPAs.